Nearly 244,000 foreclosure proceedings were started in August, according to RealtyTrac, up 115% from August, 2006 levels. The number is 36% higher than July’s number. One in every 510 households was in foreclosure during the month.
“The jump in foreclosure filings this month might be the beginning of the next wave of increased foreclosure activity, as a large number of subprime adjustable rate loans are beginning to reset now,” commented James J. Saccacio, chief executive officer of RealtyTrac. “Another significant factor in the increased level of foreclosure activity is that the number of REO filings (bank repossessions) is increasing dramatically, which means that a greater percentage of homes entering foreclosure are going back to the banks.”
Seven of the top ten states for foreclosure activity in August are in the Sun Belt, with Nevada leading the pack. One in every 165 households in Nevada is in foreclosure.